Critics, Supply and the Economy All Contribute to Expensive Wine
A well written article in the Economist takes a deep look at why the wine we love is so expensive. Whether it was the exponential growth from Asian markets in the 80’s and 90’s, the booming era of Dot Com money in the United States, or continued press from ratings by Robert Parker and Wine Spectator, the wines we want are becoming more and more expensive. The article touches on the trendiness of expensive bottles in China, that led some Chinese consumers to mix Sprite and Chateau Petrus to make the wine palatable, just so they could say they were drinking a first growth.
If wines are purchased on price or ratings alone, you’re probably missing out.
In an article in the Economic Journal*, the authors compared the results of blind tastings of Madoc wines with the 1855 classification of 60 wines into five tiers. They found that the rankings established in the 19th century differed significantly from the ratings that the panel of tasters awarded to the wines; yet prices remained closely correlated with the historic rankings. In other words, the match between quality (as perceived by present-day tasters) and price was far from perfect.
The average consumer is becoming more demanding, unfortunately, price correlates with quality, and higher prices are here to stay.
Read [Economist.com]
